South Morange Hardware’s chart of accounts includes the following selected accounts:

On 1 November the accounts payable ledger of South Morange’s Hardware showed the following balances: R. Huff $2250, G. Paul $1175, R. Snyder $500, and Wald Bros $950. The November transactions involving the payment of cash were as follows.

Required

(a) Journalise the transactions above in a five-column cash payments journal with columns for Date, Cheque Number, Amount Debited (Credited), Post Reference, Other Accounts Dr, Accounts Payable Dr, Inventory Cr, Discount Received Cr and Cash Cr. Total and cross-foot the journal.

(b) Enter the beginning balances in the Accounts Payable Control and subsidiary accounts, and post the November transactions to these accounts.

(c) Agree the control account and the subsidiary account balances. 

(d) R. Snyder, a good friend of Mr Dodgy, the purchasing officer for South Morange’s Hardware, has offered Mr Dodgy a fully paid overseas holiday if South Morange’s Hardware increase their purchases from R. Snyder by 100% in the next financial year. How would you advise Mr Dodgy?  

Transcribed Image Text:

101 Cash 120 Inventory 130 Prepaid Insurance 157 Equipment 201 306 405 Accounts Payable V. Morange, Drawing Discount Received